1 - 800 - FLOWERS.COM entered into a First Amendment to its Existing Credit Agreement on August 20 , 2020 with its subsist syndicate of banks led by JPMorgan Chase Bank , N.A. , as a tip adapter and bookrunner . The Amendment expands and qualify the credit facilities provide under the company ’s subsist Second Amended and Restated Credit Agreement dated May 31 , 2019 .
Chris McCann , chief executive officer of 1 - 800 - FLOWERS.COM , said , “ We are very pleased to have flesh out our credit adroitness and further strengthen our proportionality sheet . Combined with the significant cash flows we are generating , the Amended Credit Agreement provides us with tractability to carry on grow our business by place in our existing operating platform and seeking acquisitions that can accelerate our top and bottom - cable growth , such as our lately completed learning of PersonalizationMall.com . ”
The Amended Credit Agreement increases the commitment under the company ’s revolving citation facility to $ 250 million , up from $ 200 million under the Existing Credit Agreement , and add a new term loanword , in a principal amount of $ 100 million , in plus to the ship’s company ’s existing terminal figure loanword which presently has $ 95 million principal amount striking . The working capital sublimit under the Amended Credit Agreement is $ 200 million , and the revolving credit deftness contains a seasonal reduction to $ 125 million for the period from January 1 through August 1 for each financial year of the company , chew over increases from the $ 175 million and $ 100 million , respectively , in the Existing Credit Agreement . The new term loan , the existing terminal figure loan and the revolving credit rating facility are co - terminus with a maturity date of May 31 , 2024 .
The Amended Credit Agreement is secure by substantially all the asset of the company and certain of its U.S. subsidiary that are warranter thereunder . The interest rates applicable to borrowings under the revolving recognition facility and the existing condition loan were not modified by the Amendment . Borrowings under the new terminus loan bear interest in accord with the terms of the Amended Credit Agreement . Interest on all borrowing are based on the company ’s coalesced leverage ratio .
The company presently has zero borrowings under the revolving credit adeptness and believe that the revolving credit facility , together with cash current from operations , will be sufficient to fund its play capital requisite going onwards .
For more information:1 - 800 - FLOWERS.COMwww.1800flowers.com
